FRA has been chosen by the DOJ to oversee Binance after a $4.3 billion fine for violations of the law.
In light of Binance’s admission of non-compliance with anti-money laundering regulations in the United States and subsequent imposition of a substantial sanction of $4.3 billion, the U.S. Department of Justice (DOJ) has appointed Forensic Risk Alliance (FRA) to supervise the cryptocurrency platform.
Sullivan & Cromwell’s ties to the defunct cryptocurrency exchange FTX contributed to FRA’s selection over them. Both the legal and cryptocurrency communities have expressed their approval of this decision, with the former criticizing Sullivan & Cromwell for missing a major case of fraud at FTX.
Extensive oversight of Binance’s internal operations to assure compliance with U.S. regulations is the responsibility of the FRA. The U.S. government will have direct access to their data, facilities, and employees, and they will be required to report to them directly.
Sullivan & Cromwell may still get a job with the Financial Crimes Enforcement Network to oversee Binance’s compliance with transaction reporting regulations, even if this DOJ setback has occurred. Along with fines in Canada totaling $4.4 million and fines in India totalling $1.5 million, Binance is also facing penalties for noncompliance with anti-money laundering laws in countries outside the United States.
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